Written by: Jon McDonald
Edited by: Lillian Guevara-Castro
Reviewed by: Ashley Fricker
What does it take to get out of unemployment? In today’s market, job seekers must dedicate daily time, energy, and even money toward their hunt. Some have found ways of using artificial intelligence (AI), and others have lowered their expectations to start earning paychecks again.
In this report, we surveyed over 1,000 unemployed job seekers from across the U.S. to learn more about their job search, biggest frustrations, and top tools to get ahead.
America’s Job Application Overload
On average, job hunters applied to 51 positions since becoming unemployed, spending an average of 2 hours per day applying for jobs. For the 40% of respondents who have been unemployed for over a year, that is over 730 hours total.
Many are balancing side gigs with their job search to get some extra income. Among them are freelancing (44%), working part-time (17%), contracting (10%), or holding a job outside their primary industry (10%).
Quality vs. Quantity of Job Applications
Is it possible to tailor job applications when applying to such a large volume? Data points to more experienced job seekers spending the most time on personalization for both resumes and cover letters. Our survey shows that 47% of entry-level candidates tailor cover letters, 64% of mid-level candidates, and 73% of senior-level and higher.
Additionally, 55% of entry-level candidates tailor resumes, 63% of mid-level candidates, and 75% of senior-level and higher. More than half (55%) think the quality of applications outweighs the quantity applied.
Top Stressors & Frustrations
When it comes to the hardest parts of hunting for jobs, 3 in 4 are stressed about the amount of rejection they face, and 4 in 5 feel emotionally burnt out. A surprising 80% have not gotten interviews from their personal network, and 42% feel that they are losing opportunities due to being too old.
Job hunters face several hurdles, including rejection, emotional burnout, age discrimination, and financial loss.
Finances are often the most difficult part of unemployment: 70% worry about spending all of their savings before they find a new job, and 41% are even worried about homelessness. It’s no wonder that 62% experience physical symptoms of stress.
The Impact of Ghost Jobs
A ghost job is an opening for a position that will never be filled. Sometimes it’s a method to boost brand image and appear larger to investors. Other times, it’s standard procedure to post a job even when someone else has been chosen.
Regardless of the reason, these job postings can be a bottleneck for applicants. Our survey found that 68% of job seekers were negatively impacted by ghost jobs.
The Top Issues with Ghost Jobs:
- Wasting time on fake posts
- Overwhelming job feeds and increasing time sifting through
- Creating false hope and expectations for higher salaries
73% of Gen Z Would Trade Salary for Remote Work
Our report finds that 61% of Americans have adjusted their standards to find a job quickly. When asked about inflation, 67% said rising costs forced them to compromise on their next job.
Top Reasons for Compromise:
- Feels impossible to find a job within standards
- Can no longer afford unemployment
- Feel a lack of purpose being unemployed
Candidates have their own set of preferences for their next role, and they are willing to budge in different areas. While some care most about location (remote vs. hybrid or in-person), others attribute higher value to landing a full-time position (as opposed to contract or part-time).
Top Forms of Compromise:
- Salary – 52%
- Job title – 47%
- Full-time – 43%
- Location – 42%
- Industry – 41%
More than 4 in 5 (82%) would be willing to take a pay cut to work fully remotely. Younger generations were the most likely to do so, with 73% of Gen Z preferring remote work and 87% of millennials. Additionally, 70% would be willing to take a pay cut for a healthy company culture — 63% of Gen Z and 73% of millennials.
Paid time off (PTO) was another factor where people were willing to sacrifice salary for time off. Over 3 in 5 (63%) trade pay for more PTO, with 60% of Gen Z and 65% of millennials choosing time off over salary.
How Tools & AI Shape Job Searches
To stand out in competitive pools of applicants, paying for tools can give you an edge. Nearly 1 in 10 (9%) job hunters pay for tools to help with their search, and more than 1 in 3 (34%) feel that these tools are helping them land a job. On average, people pay $80 per month, with LinkedIn Premium making up the majority of spend.
Where Job Hunters Spend the Most:
- LinkedIn Premium
- Resume tools and services
- Paid versions of AI
AI is also paving the way for interview prep and customizing applications. Over a third (34%) use ChatGPT or alternatives for interview prep, 32% use it for cover letters, and 37% use it for adjusting their résumé. Additionally, 20% use a spreadsheet to track application progress.
“The results of the survey are truly alarming. Clearly, the majority of job seekers are struggling both emotionally and financially. If you’re in the job market, this is a perfect time to review your budget and slash expenses dramatically. Remember, this is a temporary measure. The less you spend, the more you can elongate your savings, and won’t end up leaning on credit cards, which you will regret when you do get a job and have to pay it all back. The good news is that people are taking action, making up for lost wages with temporary work and gig assignments,” says Erica Sandberg, Consumer Finance Expert with BadCredit.org.
Sandberg adds, “Ultimately, looking for employment is a numbers game, but do be on the lookout for those nonexistent jobs so you don’t waste your time. The fact is, you may be applying for positions for a while. Go into it expecting it can take a long time to get the job you want. Accepting that will help you avoid frustration.”
Methodology
In January 2025, we surveyed 1,006 unemployed job seekers in America to ask about their job search. Among respondents, 49% were men, 48% were women, and 3% were non-binary or preferred not to answer. Respondents ranged in age from 18 to 76, with an average age of 34.
For media inquiries, email catherine@badcredit.org.
